Burlington Stores (BURL) Q2 2026 earnings summary

Executive summary

• Total sales rose 10% year-over-year to $2.7 billion, with comparable store sales up 5% and net income reaching $94.2 million, driven by new store openings and Burlington 2.0 initiatives.

• Adjusted EPS increased 39% to $1.72, exceeding guidance by $0.42, and operating margin expanded by 120 basis points.

• Performance was supported by leaner inventories, supply chain optimization, and merchandising enhancements.

Financial highlights

• Q2 gross margin rate was 43.7%, up 90 basis points year-over-year, with net sales at $2.7 billion and net income at $94.2 million.

• Adjusted EBITDA for Q2 was $257 million, up from $205 million a year ago.

• Comparable store inventories down 8% year-over-year; reserve inventory up 43%, now 50% of total inventory.

• Opened 23 net new stores in Q2, reaching 1,138 stores; on track for 100 net new stores in fiscal 2025.

Outlook and guidance

• Raised full-year 2025 guidance: comparable store sales expected to increase 1%-2%, total sales up 7%-8%, and adjusted EPS guidance increased to $9.19–$9.59.

• Plans to open about 100 net new stores and invest approximately $950 million in capital expenditures.

• Q3 guidance: flat to 2% comp sales growth, total sales up 5%-7%, EPS $1.50-$1.60.

• Guidance reflects incremental tariff pressures, with most but not all offset by cost actions.